Shopping Online and Understanding Cash Apps and Prepaid Cards for Youth: Risks and Responsibilities

In today’s onlife world, online shopping has become a convenient part of our daily lives. However, with this convenience comes vulnerability—and the need for safe and secure payment methods. Below are four recommended options for reducing the risks associated with online fraud and scams.

#1 – Credit Cards

Using a regular credit card for online purchases is common, but it's essential to protect your financial information and ensure a secure transaction. Here are our top recommendations:

• Shop on credible and secure websites like Amazon or Apple. We do not recommend using a regular credit card on sites like Facebook Marketplace, eBay, or Kijiji. Always ensure the site is secure by checking for “https://” at the beginning of the URL and a padlock icon in the address bar.

  
  

• Use strong, unique passwords when creating accounts on shopping sites. Avoid reusing passwords across platforms. Consider using a password manager to generate and store complex passwords.

  
  

• Enable two-factor authentication (2FA) for an added layer of security. This requires a second form of identification, like a text code or authentication app, in addition to your password.

• Monitor your credit card statements for unauthorized activity. Most providers offer real-time alerts via text or email. Early detection can prevent further damage—this practice has personally saved us on multiple occasions.

• Consider virtual credit cards for online purchases. These are temporary numbers linked to your real card, which protect your actual information from being exposed.

• Avoid public Wi-Fi for transactions. If you must use it, connect through a Virtual Private Network (VPN) to encrypt your data.

• Leverage your card’s built-in security features, such as purchase alerts, fraud detection, and zero-liability policies. Know what protections your card offers and how to act if something goes wrong.

#2 – Prepaid (Pre-loaded) Credit Cards

Prepaid cards are a smart way to manage online purchases, offering increased security and spending control. Forbes Guide to Best Prepaid Cards

Here’s why they’re a good option:

• Not linked to bank accounts: Even if the card is compromised, the potential loss is limited to the pre-loaded amount.

• Privacy-friendly: These cards don’t require you to enter sensitive financial details during transactions.

• Budget control: Great for teaching kids financial responsibility. Load a set amount, and when it's gone, it's gone—no debt or overspending.

• Widespread acceptance: Prepaid cards work like regular credit or debit cards during online checkout.

• No impact on credit scores: Getting one doesn’t require a credit check or affect your financial record.

• Debt-free usage: Since they aren't tied to credit lines, there's no risk of racking up debt or overdraft fees.

• Ideal for one-time or travel use: Perfect for unfamiliar websites or travel expenses.

• Great for allowances or gifts: They’re often used by parents to teach kids safe spending habits.

#3 – Apple Pay

For iPhone or Apple Watch users, Apple Pay offers robust fraud protection:

• Zero liability: You won’t be held responsible for unauthorized charges, and chargebacks/refunds are available for undelivered or unsatisfactory items.

• Transaction monitoring: Suspicious activity prompts instant alerts.

• Secure Element chip: Stores your payment credentials securely, inaccessible to iOS or third-party apps.

• Tokenization: Instead of transmitting your real credit card number, Apple Pay uses a one-time dynamic security code.

• Biometric authentication: Requires Face ID, Touch ID, or a passcode for all transactions.

• Real-time notifications: You’re alerted instantly to all purchases, making it easier to detect fraud.

• Easy dispute process: Contact your bank or credit card company directly through the app.

• PCI compliance: Meets industry-leading standards for data security.

Important Note – Apple Pay vs. Apple Cash

Avoid using Apple Cash for online shopping. It does not offer buyer protection or chargeback options—once money is sent, it's gone. Apple Pay does provide these protections, which is why we recommend it for online purchases, even if a seller requests Apple Cash.

#4 – PayPal

PayPal is a top choice for secure online purchases, especially on sites like Facebook Marketplace, eBay, or Kijiji:

• No need to share financial information: PayPal acts as a middleman, encrypting your payment data.

• Excellent fraud protection and dispute resolution: Report unauthorized activity quickly and easily.

• One-touch checkout: Reduces exposure to your financial information.

• Buyer Protection Program: Get refunded if an item doesn’t arrive or isn’t as described.

• Multiple linked accounts: Flexibly choose your funding source per transaction.

• International usability: Automatic currency conversion with typically lower fees than credit cards.

• Digital wallet functionality: Preload funds for safer, budget-friendly online shopping.

Important Note – PayPal Friends and Family Option

Do not use PayPal Friends and Family for commercial transactions. It’s meant only for trusted personal use and offers no buyer protection. If a seller requests this option to avoid fees, it could be a scam.

What About Other Cash Apps Like Venmo or CashApp?

Unlike PayPal, Apple Pay, or credit cards, CashApp and Venmo generally do not offer buyer protection or refunds for online scams. These apps are designed for peer-to-peer payments and should not be used for purchasing goods or services online. That’s why we advise against using these apps for online shopping.

Summary: Protecting Your Family

Credit cards, prepaid cards, Apple Pay, and PayPal all offer different strengths when it comes to online security. Choosing the right one depends on the situation, but using secure and protected platforms helps reduce risk significantly.

• Use credit cards for secure, monitored spending on trusted platforms.

• Use prepaid cards to control budgets and protect sensitive information.

• Use Apple Pay and PayPal for encrypted, fraud-protected purchases—especially on peer-to-peer platforms like Kijiji.

How Are Cash Apps and Prepaid Cards Being Used By Some Youth?

While these tools offer convenience and teach financial responsibility, they can also expose teens to significant risks.

Legitimate Uses

• Managing lunch money, transportation, or gas expenses.

• Getting paid for small jobs like yard work.

• Building independence under parental supervision.

Concerning Uses

Some youth and teens use cash apps for:

• Buying or selling vapes

• Accessing explicit content

• Drug purchases

• Online gambling

• Transactional sex or “sugaring” 

We’ve heard anecdotally from youth that older teens and even adults (pimps, dealers) may act as “money brokers” to help teens bypass age restrictions.

Platforms Like Unlockt.me

Apps like Unlockt.me allow users to monetize images and videos. Despite stating that explicit content is prohibited, it’s easy to find youth promoting “foot pics,” nudes, and intimate content via links in Instagram or TikTok bios. These platforms are easily bypassed by youth despite age gates.

Popular Among Teens:

• CashApp: Available from age 13 with “parental” approval—but there's no real verification to ensure the person approving is the actual parent.

• Venmo Teen Accounts: Same age eligibility and verification concerns as CashApp.

Final Tips for Parents

• Thoroughly research apps before allowing your child to use them.

• Set firm guidelines and monitor account activity regularly.

• Talk openly about scams, financial responsibility, and peer pressure.

• Remind them: once money is sent through these apps, there’s no getting it back.

Red flag: If your child has a cash app but doesn’t have a job—and you aren’t funding it—it’s time to ask some serious questions. Where are they getting the money, and why do they have the app?